Table of Contents
Individuals are always in a catch 22 situation when it comes to choosing between FD and SIP for investment. SIP is a mode of investment in Mutual Funds through which individuals can deposit small amounts at regular intervals. FD, on the other hand, is an investment avenue where people deposit a certain amount for a fixed tenure and get back the amount with interest during maturity. So, let us understand which is better between FD and SIP, SIP return calculator, Top SIP to invest, and much more.
Systematic Investment plan or SIP is an investment mode in Mutual Funds which allows people to deposit small amount at regular intervals. SIP can also be referred to as a goal-based investment. SIP is one of the beauties of Mutual Funds through which people can invest as per their convenience. Through SIP people can plan to achieve many objectives like purchasing a house, purchasing a vehicle, planning for higher education, and much more. Though SIP mode of investment is available in many schemes, however, it is generally referred in the context of Equity Funds.
People can start their SIP investment with the amount as low as INR 500.
Fixed Deposit of FD refers to an investment avenue which is generally offered by banks and Post Office. In case of FD, people need to deposit a considerable amount as a one-time payment for a fixed time frame. Here, people get back their investment amount at the end of the tenure. However, people cannot break the FD during the tenure and if they try to break they need to pay some charges to the Bank. The FD Income earns interest on the investment. This interest income earned is taxable in the hands of investors.
Since SIP is an investment mode in Mutual Funds while FD is an investment avenue it itself; both of them show different characteristics. So, let us understand the differences between both of them.
The minimum investment in Mutual Funds through SIP mode of investment starts with INR 500. Therefore, it can be ensured that it does not pinch people’s pockets much. Moreover, the frequency of SIP can also be set as monthly or quarterly as per people’s convenience. On the other hand, in FD the minimum investment amount ranges between INR 1,000-10,0000. Since FD investment is through lump sum mode, therefore, people do not keep on Investing the amount.
FDs being a traditional investment avenue are considered for both short-term and long-term investment. The tenure of FD can be 6 months, 1 year and can go up to 5 years. On the contrary, SIP is generally chosen for long-term investment. Since SIP is generally referred in the context of equity funds, the long-term investment would help you to earn maximum revenues. In addition, people can enjoy maximum benefits if they are held longer.
The returns on FD is fixed in the form of interest which does not change over a period of time. For the Financial Year 2017-18, the FD rates Range between 6%-7% approximately if the investment is kept for one year. On the contrary, in case of SIP, the returns are not fixed as the returns are dependent on the performance of the Underlying equity shares. However, if the Mutual Funds are held for a period of more than five years have given historical returns of more than 15%.
Talk to our investment specialist
The risk-appetite of FD is considered to be less as compared to SIP. FDs are generally offered by banks. On the other hand, the risk appetite of SIP is more than the FD. However, if the SIP is held for a longer-tenure, the probabilities of loss reduces.
The liquidity in case of SIP is more as compared to FD. In case of SIP, if people redeem their investment they can get the money back in T+3 days for equity funds. However, in case of Debt fund, the settlement period is T+1 days. However, in case of fixed deposits, it is not easy to redeem it. Even if people try for premature withdrawals, they need to pay some charges to the bank.
The taxation rules in case of Mutual Funds and FDs both are different. In case of FDs, for the Financial year 2017-18, the interest earned is charged as per the individual’s regular tax slabs. However, as SIP is generally with respect to equity funds, therefore the tax rules related to equity funds are explained as follows.
For the Financial Year 2017-18, if the equity funds are sold after one year from the date of purchase, they are applicable for long-term Capital gains which is not taxable. However, if these funds are sold before one year from the date of purchase then; it is subject to short-term Capital Gain which is charged at a Flat rate of 15% irrespective of the individual’s tax slab.
SIP has a lot of features such as rupee cost averaging, the Power of Compounding, and so on, which is not available in case of an FD. So, let us see what do these characteristics mean.
In case of SIP, people invest in Mutual Fund units at regular time periods when the markets are showing different price behaviour. Therefore, when the markets are showing a downtrend, people can purchase more units and vice versa. Therefore, the purchase price of units gets averaged out due to SIP. However, in case of FD, this feature is not available as the amount is deposited for only one time.
SIP is applicable to compounding. Compounding refers to the compound interest where the interest amount is calculated on the principal amount and already accumulated interest. In case of FD, the interest amount is also subject to compounding.
SIP develops disciplined savings habit among individuals as people need to deposit money at regular intervals. On the contrary, in FD as people deposit the money only once, they may or may not develop a disciplined savings habit.
The table given below summarizes the differences between SIP and Fixed Deposits.
Parameters | SIP | Fixed Deposits |
---|---|---|
Returns | Varies as per the Fund’s performance | Predetermined |
Minimum Investment | Starts from INR 500 | Ranges between INR 1,000 – 10,000 |
Tenure | Generally used for long-term | Both Short and Long-term tenure |
Risk | High | Low |
Liquidity | High | Low |
Taxation | Short-term: Taxed at a Flat Rate of 15% Long-term: Not Taxed | Taxed as per individual’s slab rates |
Features | Rupee Cost Averaging, Power of Compounding, & Disciplined Savings Habit | Power of Compounding |
The primary objective of the Scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of mid cap & small cap companies. Principal Emerging Bluechip Fund is a Equity - Large & Mid Cap fund was launched on 12 Nov 08. It is a fund with Moderately High risk and has given a Below is the key information for Principal Emerging Bluechip Fund Returns up to 1 year are on To generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets with key theme focus being emerging companies (small cap stocks). The Scheme could also additionally invest in Foreign Securities. L&T Emerging Businesses Fund is a Equity - Small Cap fund was launched on 12 May 14. It is a fund with High risk and has given a Below is the key information for L&T Emerging Businesses Fund Returns up to 1 year are on (Erstwhile SBI Small & Midcap Fund) The Scheme seeks to generate income and long term capital appreciation by
investing in a diversified portfolio of predominantly in equity and equity related securities of small & midcap Companies SBI Small Cap Fund is a Equity - Small Cap fund was launched on 9 Sep 09. It is a fund with Moderately High risk and has given a Below is the key information for SBI Small Cap Fund Returns up to 1 year are on The investment objective of the scheme is to seek to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities. However, there can be no assurance that the investment objective of the scheme will be realized. IDFC Infrastructure Fund is a Equity - Sectoral fund was launched on 8 Mar 11. It is a fund with High risk and has given a Below is the key information for IDFC Infrastructure Fund Returns up to 1 year are on The Scheme seeks to achieve capital appreciation by investing in companies engaged directly or indirectly in infrastructure related activities. Franklin Build India Fund is a Equity - Sectoral fund was launched on 4 Sep 09. It is a fund with High risk and has given a Below is the key information for Franklin Build India Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2021 (%) Principal Emerging Bluechip Fund Growth ₹183.316
↑ 2.03 ₹3,124 100 2.9 13.6 38.9 21.9 19.2 L&T Emerging Businesses Fund Growth ₹42.309
↑ 0.87 ₹8,014 500 -3.4 -5.8 24.4 21.3 13 77.4 SBI Small Cap Fund Growth ₹99.5833
↑ 1.21 ₹12,098 500 -2.2 -6 15.1 25.2 18.2 47.6 IDFC Infrastructure Fund Growth ₹22.37
↑ 0.53 ₹650 100 -4 -9.4 15 13.8 7.2 64.8 Franklin Build India Fund Growth ₹60.3647
↑ 1.46 ₹1,100 500 -4.5 -9.7 14.8 12.1 10 45.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 21 1. Principal Emerging Bluechip Fund
CAGR/Annualized
return of 24.8% since its launch. Ranked 1 in Large & Mid Cap
category. . Principal Emerging Bluechip Fund
Growth Launch Date 12 Nov 08 NAV (31 Dec 21) ₹183.316 ↑ 2.03 (1.12 %) Net Assets (Cr) ₹3,124 on 30 Nov 21 Category Equity - Large & Mid Cap AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 2.08 Sharpe Ratio 2.74 Information Ratio 0.22 Alpha Ratio 2.18 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹11,789 30 Apr 19 ₹10,884 30 Apr 20 ₹9,730 30 Apr 21 ₹15,350 Returns for Principal Emerging Bluechip Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Dec 21 Duration Returns 1 Month 2.9% 3 Month 2.9% 6 Month 13.6% 1 Year 38.9% 3 Year 21.9% 5 Year 19.2% 10 Year 15 Year Since launch 24.8% Historical performance (Yearly) on absolute basis
Year Returns 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Fund Manager information for Principal Emerging Bluechip Fund
Name Since Tenure Data below for Principal Emerging Bluechip Fund as on 30 Nov 21
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. L&T Emerging Businesses Fund
CAGR/Annualized
return of 19.7% since its launch. Ranked 2 in Small Cap
category. Return for 2021 was 77.4% , 2020 was 15.5% and 2019 was -8.1% . L&T Emerging Businesses Fund
Growth Launch Date 12 May 14 NAV (20 May 22) ₹42.309 ↑ 0.87 (2.10 %) Net Assets (Cr) ₹8,014 on 30 Apr 22 Category Equity - Small Cap AMC L&T Investment Management Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 1.95 Sharpe Ratio 1.91 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹12,749 30 Apr 19 ₹10,730 30 Apr 20 ₹7,477 30 Apr 21 ₹14,296 30 Apr 22 ₹20,035 Returns for L&T Emerging Businesses Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Dec 21 Duration Returns 1 Month -6.7% 3 Month -3.4% 6 Month -5.8% 1 Year 24.4% 3 Year 21.3% 5 Year 13% 10 Year 15 Year Since launch 19.7% Historical performance (Yearly) on absolute basis
Year Returns 2021 77.4% 2020 15.5% 2019 -8.1% 2018 -13.7% 2017 66.5% 2016 10.2% 2015 12.3% 2014 2013 2012 Fund Manager information for L&T Emerging Businesses Fund
Name Since Tenure Venugopal Manghat 17 Dec 19 2.37 Yr. Vihang Naik 17 Dec 19 2.37 Yr. Sonal Gupta 5 Jul 21 0.82 Yr. Data below for L&T Emerging Businesses Fund as on 30 Apr 22
Equity Sector Allocation
Sector Value Industrials 31.03% Consumer Cyclical 20.29% Basic Materials 17.08% Technology 9.42% Consumer Defensive 7.37% Real Estate 6.45% Health Care 3.07% Financial Services 2.8% Energy 0.39% Asset Allocation
Asset Class Value Cash 2.08% Equity 97.92% Top Securities Holdings / Portfolio
Name Holding Value Quantity K.P.R. Mill Ltd (Consumer Cyclical)
Equity, Since 28 Feb 15 | KPRMILL7% ₹528 Cr 8,382,009
↓ -510,625 Grindwell Norton Ltd (Industrials)
Equity, Since 30 Sep 17 | GRINDWELL4% ₹289 Cr 1,684,948 Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 31 Jul 19 | BALRAMCHIN3% ₹257 Cr 5,801,745
↓ -562,985 E I D Parry India Ltd (Consumer Defensive)
Equity, Since 31 Jan 20 | EIDPARRY3% ₹209 Cr 3,933,689
↑ 1,889 RHI Magnesita India Ltd (Industrials)
Equity, Since 31 Aug 18 | RHIM3% ₹208 Cr 3,425,917 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | BRIGADE2% ₹196 Cr 4,311,022 Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW2% ₹176 Cr 2,338,967 Birlasoft Ltd (Technology)
Equity, Since 31 Aug 20 | BSOFT2% ₹173 Cr 4,170,543 Carborundum Universal Ltd (Industrials)
Equity, Since 31 Jul 16 | CARBORUNIV2% ₹166 Cr 2,159,700
↓ -50,000 Supreme Petrochem Ltd (Basic Materials)
Equity, Since 30 Sep 16 | 5004052% ₹155 Cr 1,694,075 3. SBI Small Cap Fund
CAGR/Annualized
return of 19.9% since its launch. Ranked 4 in Small Cap
category. Return for 2021 was 47.6% , 2020 was 33.6% and 2019 was 6.1% . SBI Small Cap Fund
Growth Launch Date 9 Sep 09 NAV (20 May 22) ₹99.5833 ↑ 1.21 (1.23 %) Net Assets (Cr) ₹12,098 on 30 Apr 22 Category Equity - Small Cap AMC SBI Funds Management Private Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.97 Sharpe Ratio 1.99 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹13,844 30 Apr 19 ₹11,965 30 Apr 20 ₹10,600 30 Apr 21 ₹19,201 30 Apr 22 ₹24,450 Returns for SBI Small Cap Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Dec 21 Duration Returns 1 Month -4.9% 3 Month -2.2% 6 Month -6% 1 Year 15.1% 3 Year 25.2% 5 Year 18.2% 10 Year 15 Year Since launch 19.9% Historical performance (Yearly) on absolute basis
Year Returns 2021 47.6% 2020 33.6% 2019 6.1% 2018 -19.6% 2017 78.7% 2016 1.3% 2015 20.6% 2014 110.7% 2013 7.8% 2012 31.9% Fund Manager information for SBI Small Cap Fund
Name Since Tenure R. Srinivasan 16 Nov 13 8.46 Yr. Data below for SBI Small Cap Fund as on 30 Apr 22
Equity Sector Allocation
Sector Value Industrials 37.05% Consumer Cyclical 25.44% Basic Materials 16.56% Consumer Defensive 5.69% Health Care 3.46% Financial Services 2.59% Communication Services 0.02% Asset Allocation
Asset Class Value Cash 9.06% Equity 90.8% Debt 0.14% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sheela Foam Ltd (Consumer Cyclical)
Equity, Since 31 Mar 19 | SFL5% ₹546 Cr 1,570,000 Vedant Fashions Ltd (Consumer Cyclical)
Equity, Since 28 Feb 22 | 5434634% ₹440 Cr 4,547,646 Blue Star Ltd (Industrials)
Equity, Since 30 Jun 18 | BLUESTARCO4% ₹421 Cr 4,000,000 Carborundum Universal Ltd (Industrials)
Equity, Since 31 May 19 | CARBORUNIV3% ₹394 Cr 4,939,842 Elgi Equipments Ltd (Industrials)
Equity, Since 31 Dec 13 | 5220743% ₹387 Cr 13,833,663 Narayana Hrudayalaya Ltd (Healthcare)
Equity, Since 31 Dec 19 | NH3% ₹328 Cr 4,400,000 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Mar 20 | NAVINFLUOR3% ₹322 Cr 790,000 Lemon Tree Hotels Ltd (Consumer Cyclical)
Equity, Since 30 Sep 19 | LEMONTREE3% ₹317 Cr 50,000,000 Fine Organic Industries Ltd Ordinary Shares (Basic Materials)
Equity, Since 31 Mar 19 | FINEORG3% ₹316 Cr 790,000 Triveni Turbine Ltd (Industrials)
Equity, Since 31 Jan 19 | 5336553% ₹312 Cr 15,435,443 4. IDFC Infrastructure Fund
CAGR/Annualized
return of 7.5% since its launch. Ranked 1 in Sectoral
category. Return for 2021 was 64.8% , 2020 was 6.3% and 2019 was -5.3% . IDFC Infrastructure Fund
Growth Launch Date 8 Mar 11 NAV (20 May 22) ₹22.37 ↑ 0.53 (2.43 %) Net Assets (Cr) ₹650 on 30 Apr 22 Category Equity - Sectoral AMC IDFC Asset Management Company Limited Rating ☆☆☆☆☆ Risk High Expense Ratio 2.51 Sharpe Ratio 1.42 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹11,752 30 Apr 19 ₹9,516 30 Apr 20 ₹6,668 30 Apr 21 ₹11,670 30 Apr 22 ₹15,001 Returns for IDFC Infrastructure Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Dec 21 Duration Returns 1 Month -6.2% 3 Month -4% 6 Month -9.4% 1 Year 15% 3 Year 13.8% 5 Year 7.2% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2021 64.8% 2020 6.3% 2019 -5.3% 2018 -25.9% 2017 58.7% 2016 10.7% 2015 -0.2% 2014 43.2% 2013 -10.8% 2012 10% Fund Manager information for IDFC Infrastructure Fund
Name Since Tenure Sachin Relekar 8 Dec 20 1.39 Yr. Data below for IDFC Infrastructure Fund as on 30 Apr 22
Equity Sector Allocation
Sector Value Industrials 56.1% Basic Materials 24.37% Utility 8.55% Communication Services 4.81% Real Estate 1.16% Energy 1.04% Asset Allocation
Asset Class Value Cash 3.97% Equity 96.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT10% ₹62 Cr 365,000 Transport Corp of India Ltd (Industrials)
Equity, Since 31 Mar 18 | TCI7% ₹48 Cr 681,424 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Mar 14 | ULTRACEMCO7% ₹48 Cr 72,000 JK Cement Ltd (Basic Materials)
Equity, Since 31 Oct 17 | JKCEMENT6% ₹38 Cr 142,284 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 19 | BHARTIARTL5% ₹30 Cr 408,700 H.G. Infra Engineering Ltd Ordinary Shares (Industrials)
Equity, Since 28 Feb 18 | HGINFRA4% ₹29 Cr 461,127 Thermax Ltd (Industrials)
Equity, Since 30 Sep 19 | THERMAX4% ₹26 Cr 124,395 Jindal Steel & Power Ltd (Basic Materials)
Equity, Since 31 Mar 18 | JINDALSTEL4% ₹26 Cr 482,100 Torrent Power Ltd (Utilities)
Equity, Since 31 Mar 18 | TORNTPOWER4% ₹24 Cr 442,900
↓ -121,900 Sagar Cements Ltd (Basic Materials)
Equity, Since 31 Mar 18 | SAGCEM4% ₹24 Cr 1,012,665 5. Franklin Build India Fund
CAGR/Annualized
return of 15.2% since its launch. Ranked 4 in Sectoral
category. Return for 2021 was 45.9% , 2020 was 5.4% and 2019 was 6% . Franklin Build India Fund
Growth Launch Date 4 Sep 09 NAV (20 May 22) ₹60.3647 ↑ 1.46 (2.48 %) Net Assets (Cr) ₹1,100 on 30 Apr 22 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 2.4 Sharpe Ratio 1.45 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Apr 17 ₹10,000 30 Apr 18 ₹10,721 30 Apr 19 ₹11,439 30 Apr 20 ₹8,265 30 Apr 21 ₹13,314 30 Apr 22 ₹16,970 Returns for Franklin Build India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 31 Dec 21 Duration Returns 1 Month -6% 3 Month -4.5% 6 Month -9.7% 1 Year 14.8% 3 Year 12.1% 5 Year 10% 10 Year 15 Year Since launch 15.2% Historical performance (Yearly) on absolute basis
Year Returns 2021 45.9% 2020 5.4% 2019 6% 2018 -10.7% 2017 43.3% 2016 8.4% 2015 2.1% 2014 93.8% 2013 6.1% 2012 39.9% Fund Manager information for Franklin Build India Fund
Name Since Tenure Ajay Argal 18 Oct 21 0.53 Yr. Kiran Sebastian 7 Feb 22 0.23 Yr. Sandeep Manam 18 Oct 21 0.53 Yr. Data below for Franklin Build India Fund as on 30 Apr 22
Equity Sector Allocation
Sector Value Industrials 34.73% Financial Services 16.81% Utility 12.05% Energy 10.84% Basic Materials 5.99% Communication Services 5.54% Consumer Cyclical 5% Real Estate 4.71% Asset Allocation
Asset Class Value Cash 4.32% Equity 95.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 20 | LT8% ₹93 Cr 550,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | ICICIBANK7% ₹72 Cr 975,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE6% ₹64 Cr 230,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 09 | BHARTIARTL6% ₹61 Cr 825,000 State Bank of India (Financial Services)
Equity, Since 31 Jul 14 | SBIN4% ₹48 Cr 965,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | AXISBANK4% ₹47 Cr 650,000 KEI Industries Ltd (Industrials)
Equity, Since 31 Dec 15 | KEI4% ₹47 Cr 390,000
↓ -56,302 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 28 Feb 21 | POWERGRID4% ₹42 Cr 1,850,000 ACC Ltd (Basic Materials)
Equity, Since 30 Apr 19 | ACC4% ₹41 Cr 175,000 NTPC Ltd (Utilities)
Equity, Since 30 Nov 16 | NTPC4% ₹41 Cr 2,600,000
The returns of SIP keep on varying. However, assuming the historical rate of returns being 15%, let’s see how the SIP investment of INR 1,000 grows over a period of 12 months.
The FD rates also keep on varying from bank to banks. However, assuming the interest rate to be 6%, let us see how the FD will perform over a period of 12 months if the investment amount is INR 1,000.
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
To conclude, it can be said that SIP has more advantages as compared to FD. However, it is always advised to people that they understand a scheme’s functioning completely before investing. In addition, they can even consult a personal financial advisor to ensure that their investment is safe and their objectives are met.